Dealing With The New Claims Management Regulator

On 1 April 2019 the FCA will become the regulator of claims management companies (CMCs) established or serving customers, in England, Wales and Scotland. At the same time the Financial Ombudsman Service will take responsibility for resolving disputes about CMCs.

This will not just be a change of the organisation in charge. There will be a change in the basis, scope and content of regulation as well as changes to the bureaucracy in force.

Change in the basis of regulation. The existing bespoke regime implemented under the Compensation Act 2006 and regulations under that Act, the Financial Guidance and Claims Act 2018, and proposed regulations under that Act will bring CMCs into the general statutory framework under the Financial Services and Markets Act 2000, a far more detailed and developed regulatory scheme. The FCA in many areas will expect firms to be performing in the same sort of way as firms providing regulated financial services. For many firms, this will